Audit 395687

Criteria : CFR Part 200.430(g) identifies standards for documentation of personnel expenses. Internal controls within the organization should be designed and effectively implemented to support these standards for documentation. Condition : In the testing of 40 payroll selections there were two instances in which the timecards signed by the two employees did not agree with the allocated amount charged to the program. Effect: The allocation on the timecard did not agree to the amount allocated to the program. Cause : During the year the Organization updated the spreadsheets used to record the timesheet files. For these employees, the template was not copied forward and the old rates were used for several months after the change. Context : During our testing of the personnels' payroll, it was noted that the allocation on the timesheets did not agree with the amount allocated to the program in two instances. Upon further inquiry with the Organization, it was determined that the employees' allocation spreadsheet had not been updated properly for several months and had allocations different from the timesheets before it was corrected. Questioned Costs: None noted. Recommendation : We recommend that the Organization review its control process for reviewing the spreadsheets for the allocation of personnel payroll to confirm it agrees to the timesheets signed by employees. Views of Responsible Officials and Planned Corrective Actions : We agree with the finding, see corrective action plan.